Israel denies rift with Germany over settlements

Israel on Sunday denied a diplomatic rift with Germany over the issue of settlement construction after a reportedly tense phone call between Prime Minister Benjamin Netanyahu and Chancellor Angela Merkel.

Merkel reportedly chastised Netanyahu during Friday's call, telling him she had "absolutely no understanding" of Israel's decision to approve new settlement construction.

Israeli media said the exchange showed relations with Germany were in deep crisis, but Netanyahu's office denied that in a statement on Sunday. "Relations with the German government and Chancellor Angela Merkel are good and very close. When differences emerge they are discussed in a positive way," the statement said.

In Berlin, Merkel's spokesman Steffen Seibert confirmed that the German leader had questioned Israel's commitment to peace talks in the wake of its decision to announce the new construction of settlements. "This approval had raised doubt whether the Israeli government has an interest in the start of serious negotiations," he said, adding that Merkel told Netanyahu it was "now a question of dispelling this doubt."

Israeli newspaper Haaretz, citing unidentified German officials, described the tone of the call as angry, saying Merkel was "furious" and "does not believe a word (Netanyahu) says."